Jose Mujica
Uruguay's president Jose Mujica is greeted by the crowd after holding a meeting in MarchGetty

Uruguay president Jose Mujica has received a $1m offer for his light blue 1987 Volkswagen Beetle.

Mujica, who has been dubbed the world's poorest president because of his modest lifestyle, told Uruguayan media outlet Busqueda that he had been offered the extravagant sum for the average car from an Arab sheikh.

He said that if he were to accept the offer, the money would be put towards helping the poor.

Mujica lives on an austere farm in the region of Montevideo and reportedly gives away 90% of his $144,000 (£91,000) yearly salary to charities.

The Beetle was valued at $1,800 in 2010 when he listed it in his annual personal wealth declaration – his only possession with the farm listed in his wife's name.

Jose Mujica Beetle
Jose Mujica and his Beetle

"They made me an offer," the 79-year old said.

"I was a bit surprised, and at first I really didn't pay too much attention to it. But later, another offer came in, and I began to take it a little more seriously."

Talking about why someone would pay $1m for the outdated car, Mujica commented: "Human beings have a bit of fetishism; we need certain material symbols."

He added that he has "no commitment to cars" but joked that he would keep it to transport his dog who only has three legs.

Mujica is a very popular figure in Uruguay, recently winning a 60% approval rating. However, he will not be running for a second consecutive term under the country's constitutional regulations.